Race is On To Tempt Consumers to Bundles Entertainment

The race is on to sign up consumers to bundled entertainment and communications services, with brands such as BT, Sky, MSN and Carphone Warehouse encroaching on each others traditional territories whilst vying for customers to stay loyal, according to Continental Researchs Autumn 2006 Convergence Report*.

[ClickPress, Thu Nov 23 2006] The race is on to sign up consumers to bundled entertainment and communications services, with brands such as BT, Sky, MSN and Carphone Warehouse encroaching on each others traditional territories whilst vying for customers to stay loyal, according to Continental Researchs Autumn 2006 Convergence Report*.

James Myring, associate director at Continental Research, said: Many commentators are saying that the future of home entertainment and communications lies through a single pipe providing a number of services such as broadband, TV, fixed line telephony and even mobile phone services. This is known as triple, or quad play

Myring added: TV companies are moving into telecoms services and fixed and mobile operators are moving into entertainment and broadband. Some are doing this organically, others by acquisition. What were previously distinct market sectors are merging into one, with all players trying to leverage new services from their existing customer base. But is convergence or bundling actually what people want? Do consumers actually want to receive key services (such as ISP, fixed line phone, TV channels and mobile phone) through one supplier?

The evidence below suggests that broadly speaking bundling is something that does appeal to consumers. Only 15% are against receiving bundled services. The majority are either slightly in favour, or indifferent. The obvious conclusion is that if companies can put together an attractive bundled package then there will be significant consumer interest.

chart available



In addition bundling can help to reduce churn amongst high spending customers. Currently 17% of mobile owners are likely to switch mobile network in the next year. But, when asked: If you were offered free broadband for home internet access as an incentive to stay with your current mobile provider, how likely would you be to switch network?, only 54% still say they are likely to switch. Even if it loses money free broadband could still be a valuable tool if it helps to reduce churn amongst high spending customers.





chart available










Myring added: Consumers are open towards bundling, however there are still areas that are open to question.How appealing will individual brands be across a range of sectors, after all a strong brand name in one sector may not translate well to another. This is a particular issue in the provision of broadband where Sky, Orange and Carphone Warehouse have been promoting free broadband to their customers.

To determine the relative appeal of a number of brands, internet users were asked to rate the companies below as potential broadband providers.




Encouragingly for Sky, it is viewed almost as positively as an established broadband provider (ntl/ Telewest) and more so than another (Virgin). Neither Carphone Warehouse nor Orange score very highly as an ISP provider. The relatively low score for Orange is particularly interesting given that Wanadoo (an established ISP) has been rebranded as Orange.

It will be difficult for companies to become credible in all convergent technologies. Brands like Sky, BT and Virgin that have a brand name with appeal beyond its traditional area of expertise are the companies that look best placed to succeed.






Also in the Convergence Report:
- Providers of TV channels, fixed line telecoms, mobile phones, broadband
- Attitude to free broadband offers
- Convergence brand map
- Accessing the internet via TV, mobile
- Watching TV via internet, mobile
- Listening to radio via TV, mobile
- Impact of VoIP

For further information:
Amanda Harrison
01296 660 294
ah@amandaharrisonmedia.co.uk

James Myring
0207 490 9129
James.myring@continentalresearch.com

Bookmark this release: Del.icio.us - Digg - Furl - Blinklist - Reddit